Approximately one in five 55-year-olds in the United Stated do not have sufficient funds to live comfortably in retirement according to Prudential Financial's new "Pulse of the American Retiree" report.
According to the report, the median savings of current 55-year-old adults stands at a mere $50,000, significantly below what is necessary to ensure a stable and comfortable old age. The study points out that individuals approaching retirement age admit to feeling anxious about their future financial situation, acknowledging that inflation and daily expenses further complicate their outlook:
"Fifty-five-year-old Americans are far less financially secure than older generations, and face mental and emotional strain that extends beyond prevailing notions about the "midlife" crisis. These challenges are exacerbated by calculations that Social Security's trust funds will be depleted as this generation reaches retirement age in 2035 — making this the first modern generation to confront retirement without full Social Security support, and in most cases without a defined benefit pension plan."
Prudential explains that 55-year-olds face the most significant mental and emotional health challenges, particularly if they are financially insecure. Among those polled, the results paint a gloomy picture:
- Fifty-five-year-olds are the least satisfied with their lives, rating life satisfaction just 6.2 on a 10-point scale. Seventy-five-year-olds, meanwhile, report the greatest life satisfaction (7.4), followed by 65-year-olds (7.0).
- Fifty-five-year-olds who lack financial security are significantly more likely to struggle with mental health (53%) than those who are financially secure (33%).
- Forty-five percent of 55-year-olds find it difficult to maintain relationships as they age, significantly more than older generations (31% of 65-year-olds and 27% of 75-year-olds).
These findings are more alarming when combined with another recent study from The National Institute on Retirement Security (NIRS) It is worth noting that the oldest members of this group, part of Generation X, are approaching or have already reached 60, an age many consider the beginning of retirement.
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